The Fuse
Equity futures are mildly higher this morning as everyone awaits the September labor report, the last one before the next election.
Interest Rates are moving up again, worry over the jobs report being too strong, the fed could have to dial back on the aggressiveness of rate cutting policy.
Stocks in China were very strong again overnight, gold is down a bit while crude oil is gaining ground again.
Earnings from Levi last night were atrocious, the stock is down sharply today.
A pretty volatile session, but we are getting used to these happening lately. Stocks meandered around, moving higher following some bullish economic data but turning lower later on after some suspect comments by fed officials about monetary policy. Today’s job report is going to move markets and launching traders/investors into earnings season.
breadth was terrible on Thursday but may turn it around here on Friday. A strong jobs report is going to turn equities around, bonds are falling again as rates jump, there is a lower probability of three cuts in 2024 now.
Turnover was awful on Thursday but we expect to see that change sharply today. We may have the highest volume level of the week today as stocks rally before earnings season gets underway.
A pretty much blah session with stocks making a lower high and lower low. It seems the market is stuck in neutral here, it won’t last this long for sure. We don’t have any changes from yesterday, the support zones are still in place. Higher levels exist but we would need to see a bit of volatility to get there.
The Internals
What’s it mean?
Internals were pretty pathetic yesterday but may turn around and come alive today. VOLD straight down, as was the ADSPD. A big move in put/call to the downside as traders are getting bullish, ticks were mostly red all session but the ADD did move higher. The VIX also is on the move.
The Dynamite
Economic Data:
- Friday:Jobs report, NY Fed President
Earnings this week:
- >
- Friday:APOG
Fed Watch:
This has to be a record week for Fedspeak. No less than 13 speeches/opening remarks from everyone on the FOMC committee. That includes Chair Powell on Monday. This past week had several speakers as well as Powell but they did no harm. This week’s labor report is likely to cause a bit of indigestion for some.
Stocks to Watch
Gold – Last week saw the metal close above 2,700 per ounce, gold is on a roll in 2024. It can continue, perhaps towards 2,800 by year end.
China – Stocks from China have been very hot and moving sharply higher of late following some stimulus measures in the country. We’ll see if that continues or if a pullback is seen.
Energy – We have seen oil prices pulling back from the $70 per barrel level amid OPEC+ officials saying they plan to push more oil onto the market.
